Bosch Layoffs: Firm Plans To Fire 7,000 Employees Amid Ongoing Business Challenges

Bosch Layoffs: Despite the layoffs, Bosch is moving forward with its largest-ever acquisition, planning to purchase Irish firm Johnson Controls' residential and light Commercial HVAC Businesses

Bosch Layoffs: German automotive components giant Bosch has announced plans to lay off 7,000 employees due to ongoing business challenges. CEO Stefan Hartung also indicated that additional job cuts may be necessary, as the company has not met its financial targets for 2024.

“In recent months, Bosch has repeatedly announced plans to reduce jobs worldwide. The latest move affects over 7,000 jobs in Germany, primarily in the automotive supply sector, but also in the tools division and the BSH subsidiary that handles household appliances," said Hartung, according to a report from Rzeczpospolita. 

The company reported nearly $98 billion in revenue for 2023. According to CEO Stefan Hartung, this year's return on sales is projected to be 4 per cent, down from 5 per cent last year, with a target of 7 per cent by 2026. Hartung also acknowledged that Bosch is unlikely to meet its financial objectives for 2024, adding, "Bosch will not achieve its economic goals in 2024; at the moment, I cannot rule out that we will have to further adjust our staffing resources."

Despite the layoffs, Bosch is moving forward with its largest-ever acquisition, planning to purchase Irish firm Johnson Controls' residential and light Commercial HVAC Businesses for approximately $8 billion. This strategic move is aimed at bolstering Bosch's presence in the heat pump and air conditioning sectors.

The layoffs contribute to the growing concerns in the auto industry, a key sector of Europe's largest economy. On Wednesday, Volkswagen reported a sharp drop in profits, falling to a three-year low in the third quarter. Meanwhile, workers are threatening strike action in response to the company’s plans to cut costs by closing plants in Germany and reducing wages.

Layoffs are not just limited to one industry; almost every big firm around the world from different sectors has announced significant numbers of layoffs this year, leaving thousands of employees unemployed and with an uncertain future.